THE INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY ACT, 2019 
____________ 
ARRANGEMENT OF SECTIONS 
__________ 

CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title and commencement. 
2.  Application. 
3.  Definitions. 

CHAPTER II 
ESTABLISHMENT OF AUTHORITY 

4.  Establishment and incorporation of Authority. 
5.  Composition of Authority. 
6.  Terms of office and conditions of service of Chairperson and other Members. 
7.  Removal of Member from office. 
8.  Meetings of Authority. 
9.  Vacancies, etc., not to invalidate proceedings of Authority. 
10.  Administrative powers of Chairperson. 
11.  Officers and other employees of Authority. 

CHAPTER III 

POWERS AND FUNCTIONS OF AUTHORITY 

12.  Functions of Authority. 
13.  Powers of Authority in relation to financial products, financial services and financial institutions. 

CHAPTER IV 

FINANCE, ACCOUNTS AND AUDIT 

14.  Grants by Central Government. 
15.  Fund of Authority. 
16.  Accounts and audit. 
17.  Performance Review Committee. 
18.  Maintenance of website. 
19.  Returns and reports. 

1 

 
 
 
 
CHAPTER V 

FOREIGN EXCHANCE TRANSACTIONS 

SECTIONS 

20.  Transactions in foreign currency. 

CHAPTER VI 

MISCELLANEOUS 

21.    Power to issue directions. 
22.  Power of Central Government to supersede Authority. 
23.  Delegation of powers. 
24.  Members, officers and employees of the Authority to be public servants. 
25.  Protection of action taken in good faith. 
26.  Exemption from tax. 
27.  Power to make rules. 
28.  Power to make regulations. 
29.  Rules and regulations to be laid before Parliament. 
30.  Overriding effect. 
31.  Power to modify provisions of other enactments in relation to International Financial Services 

Centres. 

32.  Power to remove difficulties. 
33.  Amendment to certain enactments. 
34.  Savings. 

THE FIRST SCHEDULE 
THE SECOND SCHEDULE 

2 

 
 
 
 
 
THE INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY ACT, 2019 

ACT NO 50 OF 2019 

[19th December, 2019.] 

An Act to provide  for  the establishment of  an Authority to  develop  and  regulate  the financial 
services  market  in  the  International  Financial  Services  Centres  in  India  and  for  matters  connected 
therewith or incidental thereto. 

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title and commencement.—(1) This Act may be called the International Financial Services 

Centres Authority Act, 2019. 

(2) It shall come into force on such date1 as the Central Government may, by notification in the Official 
Gazette, appoint; and different dates may be appointed for different provisions of this Act, and any reference 
in any provision to the commencement of this Act shall be construed as a reference to the coming into 
force of that provision. 

2.  Application.—This Act shall apply to the International Financial Services Centres set up under 

section 18 of the Special Economic Zones Act, 2005 (28 of 2005). 

3. Definitions.—(1) In this Act, unless the context otherwise requires,— 

(a) “appropriate regulator” means any financial sector regulator specified in the First Schedule to 

this Act; 

(b)  “Authority”  means  the  International  Financial  Services  Centres  Authority  established  under 

sub-section (1) of section 4; 

(c)  “financial  institution”  means  a  unit  set  up  in  an  International  Financial  Services Centre and 

which is engaged in rendering financial services in respect of any financial product; 

(d) “financial product” means— 

 (i) securities; 

(ii) contracts of  insurance; 

(iii) deposits; 

(iv) credit arrangements; 

(v) foreign currency contracts other than contracts to exchange one  currency for another that 

are to be settled immediately; and 

(vi) any other product or instrument that may be notified by the Central Government from time 

to time. 

1. 27th April, 2020—Sections 1 to 11 (both inclusive), 14, 15, 16, 27, 29, 30 and 34, vide notification No. S.O. 1384(E), dated 
27th April, 2020, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 
21st August, 2020—Sections 12, 17 to 26 (both inclusive), 28, 31 and 32, vide notification No. S.O. 2844(E), dated 21st August, 
2020, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 
1st October, 2020—Section 13 and 33, vide notification No. S.O. 3374(E), dated 29th September, 2020, see Gazette of India, 
Extraordinary, Part II, sec. 3(ii). 

3 

 
 
                                                           
(e) “financial service” means— 

(i) buying, selling, or subscribing to a financial product or agreeing to do so; 

(ii) acceptance of  deposits; 

(iii)  safeguarding  and  administering  assets  consisting  of  financial  products,  belonging  to 

another person, or agreeing to do so; 

(iv) effecting contracts of insurance; 

(v) offering, managing or agreeing to manage assets consisting of financial products belonging 

to another  person; 

(vi) exercising any right associated with a financial product or financial service; 

(vii) establishing or operating an investment  scheme; 

(viii) maintaining or transferring records of ownership of a financial product; 

(ix) underwriting the issuance or subscription of a financial product; 

(x) providing information about a person's financial standing or creditworthiness; 

(xi) selling, providing, or issuing stored value or payment instruments or providing payment 

services; 

(xii) making arrangements for carrying on any of the services in sub-clauses (i) to  (xi); 

(xiii) rendering or agreeing to render advice on or soliciting for the purposes  of— 

(A) buying, selling, or subscribing to, a financial product; or 

(B) availing any of the services in sub-clauses (i) to (xi); or 

(C)  exercising  any  right  associated  with  a  financial  product  or  any  of  the  services  in 

clauses (i) to (xi); 

(xiv) any other service that may be notified by the Central Government from time to time; 

(f)  “foreign  currency”  shall  have  the  meaning  assigned  to  it  in  clause  (m)  of  section  2  of  the 

Foreign Exchange Management Act, 1999 (42 of 1999); 

(g) “International Financial Services Centre” means an International Financial Services Centre set 
up, before or after the commencement of this Act, under section 18 of the Special Economic Zones Act, 
2005 (28 of 2005); 

(h) “Member” means a Member of the Authority and includes  the Chairperson; 

(i)  “notification”  means  a  notification  published  in  the  Official  Gazette,  and  the  expressions 

“notified” and “notify” shall be construed accordingly; 

(j) “prescribed” means prescribed by rules made by the Central Government under this Act; 

(k) “regulations” means the regulations made by the Authority under this Act. 

4 

 
 
(2) Words and expressions used and not defined in this Act but defined in the Acts specified under 
column  (3)  of  the  First  Schedule  to  this  Act  shall  have  the  meanings  respectively  assigned  to  them  in 
those Acts. 

CHAPTER II 

ESTABLISHMENT OF AUTHORITY 

4.  Establishment  and  incorporation  of  Authority.—(1)  The  Central  Government  shall,  by 
notification,  for  the  purposes  of  this  Act,  establish  an  Authority  by  the  name  of  the  International 
Financial Services Centres Authority. 

(2) The Authority shall be a body corporate having perpetual succession and a common seal, and subject 
to the provisions of this Act, with power to enter into and execute contracts, acquire, hold and dispose of 
property, both movable and immovable, and shall, by the said name, sue and be  sued. 

(3)  The  head  office  of  the  Authority  shall  be  at  such  place  as  the  Central  Government  may,  by 

notification, decide. 

(4) The Authority may, with the prior approval of the Central Government, establish its offices at other 

places in India or outside India. 

5.  Composition  of  Authority.—(1)  The  Authority  shall  consist  of  the  following  Members,  to  be 

appointed by the Central Government, namely:— 

(a) a Chairperson; 

(b) one Member each to be nominated by— 

(i) the Reserve Bank of India, ex officio; 

(ii) the Securities and Exchange Board of India, ex officio; 

(iii) the Insurance Regulatory and Development Authority of India, ex officio; and 

(iv) the Pension Fund Regulatory and Development Authority, ex officio; 

(c) two Members, from amongst the officials of the Ministry dealing with Finance, to be nominated by 

the Central Government, ex officio; and 

(d) two other Members to be appointed by the Central Government on the recommendation of a 

Selection Committee. 

(2)  The Chairperson shall be a whole-time Member and other Members referred to in  clause  (d)  of  
sub-section (1) may  be appointed as whole-time or part-time Members as the  Central Government may 
deem fit. 

(3)  The  Members  shall  be  persons  of  ability,  integrity  and  standing  who  have  shown  capacity  in 
dealing with matters relating to financial sectors or have special knowledge or experience of law, finance, 
economics, accountancy, administration  or  in  any  other  discipline  which  in  the  opinion  of  the  Central 
Government, shall be useful to the Authority. 

(4) The Selection Committee referred to in clause (d) of sub-section (1) shall consist of such Members 

and constituted by the Central Government in such manner as may be prescribed. 

5 

 
 
6.  Terms  of  office  and  conditions  of  service  of  Chairperson  and  other  Members.—(1)  The 
Chairperson and a Member shall hold office for a term of three years from the date on which he enters upon 
his office and shall be eligible for re-appointment: 

Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-five 

years or as a whole-time member after he has attained the age of sixty-two years. 

(2) The salaries and allowances payable to, and other terms and conditions of service of, the Members, 

other than ex officio Members, shall be such as may be prescribed. 

(3) Notwithstanding anything in sub-section (1), a Member may— 

(a) resign from his office by giving in writing to the Central Government a notice of not less than 

three months;  or 

(b) be removed from his office in accordance with the provisions of section 7. 

(4) No Member, other than ex officio Member, shall, for a period of two years from the date on which 

they cease to hold office as such, except with the previous approval of the Central Government, accept— 

(a) any employment either under the Central Government or under any State Government; or 

(b) appointment in any financial institution in the International Financial Services Centres. 

7. Removal of Member from office.—The Central Government may remove from office a Member, 

who— 

(a) is, or at any time has been, adjudged as insolvent; or 

(b) has become physically or mentally incapable of acting as a Member; or 

(c)  has  been  convicted  of an  offence  which  in the opinion  of the  Central  Government  involves 

moral turpitude; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a 

Member; or 

(e) has so abused his position so as to render his continuance in office detrimental to public interest: 

Provided that no Member shall be removed from office under clause  (d) or clause (e) unless he 

has been given a reasonable opportunity of being heard in the matter. 

8. Meetings of Authority.—(1) The Authority shall meet at such times and places, and shall observe 
such rules of procedure in regard to the transaction of business at its meetings (including quorum at such 
meetings) as may be specified by regulations. 

(2)  The Chairperson, if for any reason, he is unable to attend a meeting of the Authority,  any  other 
Member  chosen  by  the  Members  present  from  amongst  themselves  at  the  meeting  shall  preside  at  the 
meeting. 

(3) All questions which come up before any meeting of the Authority shall be decided by a majority of 
votes of the Members present and voting, and, in the event of an equality of votes, the Chairperson, or in his 
absence, the person presiding, shall have a casting  vote. 

(4) Any Member who has any direct or indirect interest in any matter likely to come up for consideration 
at a meeting of the Authority shall, as soon as possible after the relevant circumstances have come to his 
knowledge,  disclose  in  writing,  the  nature  of  his  interest  at  such  meeting  and  such  disclosure  shall  be 
6 

 
 
recorded in the proceedings of the Authority and  such Member shall not take part in any deliberation or 
decision of the Authority with respect to that matter. 

9.  Vacancies  etc.,  not  to  invalidate  proceedings  of  Authority.—No  act  or  proceeding  of  the 

Authority shall be invalid merely by reason of,— 

(a) any vacancy or defect, in the constitution of the Authority; or 

(b) any defect in the appointment of a person as a member of the authority. 

10.  Administrative  powers  of  Chairperson.—the  Chairperson  shall  have  the  powers  of  general 

superintendence and direction in respect of all administrative matters of the Authority. 

11.  Offices  and  other  employees  of  Authority.—(1) the Authority  may  appoint  such  officers  and 

other employees as it considers necessary for the efficient discharge of its functions under this  act. 

(2) the salaries and allowances payable to, and other terms and conditions of service of, officers and 
other employees of the Authority appointed under sub-section (1) shall be such as may be specified by 
regulations. 

CHAPTER III 

POWERS AND FUNCTIONS OF AUTHORITY 

12.  Functions  of  Authority.—(1)  Subject  to  the  provisions  of  this  Act,  it  shall  be  the  duty  of  the 
Authority to develop and regulate the financial products, financial services and financial institutions in the 
International Financial Services Centres, by such measures as it deems fit. 

(2) Without prejudice to the generality of the provisions in sub-section (1), the powers and functions of 

the Authority shall include— 

(a) regulating the financial products, financial services and financial institutions in an International 
Financial Services Centre which have been permitted, before the commencement of this Act, by any 
regulator for any International Financial Services Centre; 

(b)  regulating  such  other  financial  products,  financial  services  or  financial  institutions  in  the 
International  Financial  Services  Centres  as  may  be  notified  by the  Central Government from time to 
time; 

(c) recommending to the Central Government such other financial products, financial services and 
financial  institutions  which  may  be  permitted  in  an  International  Financial  Services  Centre  by  the 
Central Government; 

(d) perform such other functions as may be prescribed. 

13.  Powers  of  Authority  in  relation  to  financial  products,  financial  services  and  financial 
institutions.—(1)  Notwithstanding  anything  contained  in  any  other  law  for  the  time  being  in  force, all 
powers exercisable by an appropriate regulator, specified under column (2) of the First Schedule, under the 
respective Acts as specified in the corresponding entry under column (3) of the said Schedule shall, in the 
International  Financial  Services  Centres,  be  exercised  by  the Authority  in  so  far  as  it  relates  to  the 
regulation of the financial products, financial services or financial institutions, as the case may be. 

(2)  The  Central  Government  may,  by  notification,  amend  the  First  Schedule  by  including  therein  any 
financial  sector  regulator  and  the  law  administered  by  it,  or  omitting  therefrom  any  financial  sector 

7 

 
 
regulator or any law specified therein, and on the publication of such notification, such regulator and the 
law shall be deemed to be included in, or omitted from, the First Schedule. 

(3) Every notification issued under sub-section (2) shall be laid before each House of Parliament. 

(4) For the purposes of sub-section (1), the provisions of the respective Acts specified under column (3) 

of the First Schedule relating to— 

(a) the manner of filing an application for recognition or registration or withdrawal of recognition or 

registration or furnishing of information or reports; 

(b) the procedure of inspection, investigation or prosecution of offences, settlement of civil and 
administrative proceedings, compounding or adjudication of any offence or penalty, or actions to be 
taken  in  furtherance  of  such  inspection,  investigation,  or  adjudication  or  filing  of  appeals  arising 
therefrom; 

(c) the determination or settlement, as the case may be, of any fee or fine or penalty or any other 
sum of amount or punishment for the contravention of any provisions of respective Acts specified in 
the First Schedule and recovery of such fine or penalty, 

shall, mutatis mutandis, apply to financial products, financial services and financial institutions under this 
Act,  as  they  apply  to  the  financial  products,  financial  services  and  financial  institutions  under  such 
respective Acts. 

(5)  The  penalties,  fines,  fees  and  settlement  amounts  shall  be  collected  or  realised  in  the  foreign 

currency equivalent of the penalty or fine imposed. 

Explanation.—The rate of exchange for computing the foreign currency equivalent to Indian rupees 
shall be such as are as notified by the Reserve Bank of India on the date of the order imposing the penalty 
or fine, as the case may be. 

(6) All sums realised by way of penalties or fines under this Act shall be credited to the Consolidated 

Fund of India in Indian rupees. 

(7)  The  Authority  may,  in  addition  to  the  above,  specify  by  regulations  the  manner  in  which  the 

functions may be performed by the Authority for carrying out the provisions of this  section. 

CHAPTER IV 

FINANCE, ACCOUNTS AND AUDIT 

14. Grants by Central Government.—The Central Government may, after due appropriation made by 
Parliament  by  law  in  this  behalf,  make  to  the Authority  grants  of  such  sums  of  money  as  the  Central 
Government may think fit for being utilised for the purposes of this   Act. 

15.  Fund  of  Authority.—(1)  There  shall  be  constituted  a  Fund  to  be  called  the  International 

Financial Services Centres Authority Fund and there shall be credited thereto— 

(a) all grants, fees and charges received by the Authority under this Act;  and 

(b)  all sums received by the Authority from the sources as may be decided upon  by  the  Central 

Government. 

8 

 
 
 
(2) The Fund shall be applied for meeting— 

(a) the salaries, allowances and other remuneration of Members, officers and other employees of 

the Authority; and 

(b) other expenses incurred by the Authority in connection with the discharge of its functions and 

for the purposes of this  Act. 

16.  Accounts  and  audit.—(1)  The  Authority  shall  maintain  proper  accounts  and  other  relevant 
records and prepare an annual statement of accounts in such form as may be prescribed by the Central 
Government in consultation with the Comptroller and Auditor-General of India. 

(2)  The  accounts  of  the  Authority  shall  be  audited  by  the  Comptroller  and  Auditor-General of 
India at such intervals as may be specified by him and any expenditure incurred in connection with such 
audit shall be payable by the Authority to the Comptroller and Auditor-General of India. 

(3) The Comptroller and Auditor-General of India and any other person appointed by him in connection 
with the audit of the accounts of the Authority shall have the same rights and privileges and authority in 
connection  with  such  audit  as  the  Comptroller  and  Auditor-General of India generally has in connection 
with the audit of the Government accounts and, in particular, shall have the right to demand the production of 
books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the 
Authority. 

(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any 
other  person  appointed  by  him  in  this  behalf  together  with  the  audit  report  thereon shall be forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  each 
House of Parliament. 

17.  Performance  Review  Committee.—(1)  The  Authority  shall  constitute  a  Performance  Review 
Committee,  consisting  of  at  least  two  Members  of  the  Authority  to  review  the  functioning  of  the 
Authority, whether— 

(a) it has adhered to the provisions of the applicable laws while exercising powers or performing 

functions under this Act; 

(b)  the  regulations  made  by  the Authority  to  give  effect  to  the  provisions  of  this  Act  promote 

transparency and best practices of governance; and 

(c) the Authority is managing risks to its functioning in a reasonable manner. 

(2)  The Performance Review Committee shall make the review under sub-section (1) at  least once in 
every financial year, and submit a report of its findings to the Authority which shall forward a copy thereof 
along with action taken, if any, pursuant to such report to the Central Government within a period of three 
months from the date of receipt of the report. 

(3) The Performance Review Committee shall maintain a system by which any person may submit to the 

committee, any incidence of— 

9 

 
 
(a) non-adherence of the provisions of any applicable law by the Authority; 

(b) misappropriation of resources of the Authority by any person; 

(c) abuse of powers of the Authority by any Member or employee of the Authority; or 

(d) non-compliance of any decision of the Authority by any Member or employee of the Authority. 

(4) The Authority shall make regulations governing the information to be provided to the Performance 
Review  Committee,  and  the  provision  of  adequate  resources  to  enable  the  committee  to  discharge  its 
functions under this  section. 

18. Maintenance of website.—(1) The Authority shall maintain such website or any other universally 

accessible repository of electronic information as may be specified by regulations. 

(2)  All  the  regulations  and  orders  issued  by  the  Authority  shall  be  published  in  its  website  or 

repository maintained under sub-section (1). 

(3) The Authority shall review the quality of the website or the repository, based on international best 

practices, once every year and publish the report containing its findings with the annual report. 

19. Returns and reports.—(1) The Authority shall furnish to the Central Government at such time and 
in such  form and manner as may be prescribed or as the Central Government may direct, such returns and 
statements and such particulars with regard to any proposed or existing programme for  the development 
and regulation of the units in the International Financial Services Centres, as the Central Government may, 
from time to time, require. 

(2) Without prejudice to the provisions of sub-section (1), the Authority shall, within ninety days after 
the  end  of  each  financial  year,  submit  to  the  Central  Government,  a  report  in  such  form,  as  may  be 
prescribed, giving a true and full account of its activities, policies and programmes during the previous 
financial year. 

(3)  A copy  of  the  report  received  under  sub-section (2) shall  be  laid,  as soon  as  may  be  after  it  is 

received, before each House of Parliament. 

CHAPTER V 

FOREIGN EXCHANGE TRANSACTIONS 

20.  Transactions  in  foreign  currency.—Every transaction of financial services in an International 
Financial  Services  Centre  shall  be  in  such  foreign  currency  as  may  be  specified  by  regulations  in 
consultation with the Central Government. 

CHAPTER VI 

MISCELLANEOUS 

21.  Power  to  issue  directions.—(1)  Without  prejudice  to  the  foregoing  provisions  of  this Act,  the 
Authority shall, in exercise of its powers or the performance of its functions under this Act, be bound by 
such directions on questions of policy as the Central Government may give in writing to it from time to 
time: 

10 

 
 
Provided that the Authority shall, as far as practicable, be given an opportunity to express its views 

before any direction is given under this sub-section. 

(2) The decision of the Central Government, whether a question is one of policy or not, shall be final. 

22.  Power  of  Central  Government  to  supersede  Authority.—(1)  If  at  any  time  the  Central 

Government is of the opinion that— 

(a) on account of circumstances beyond the control of the Authority, it is unable to discharge the 

functions or perform the duties imposed on it by or under this Act; or 

(b) the Authority has persistently defaulted in complying with any direction given by the Central 
Government under this Act or in the discharge of the functions or performance of the duties imposed on 
it by or under this Act and as a result of such default the financial position of the Authority or the 
administration of the Authority has deteriorated;  or 

(c) circumstances exist which render it necessary in the public interest so to do, 

the Central Government may, by notification and for reasons to be specified therein, supersede the Authority for 
such period, not exceeding six months, as may be specified in the notification: 

Provided that  before  issuing  any  such  notification,  the  Central  Government shall  give  a  reasonable 

opportunity to the Authority to make representations, if any, of the Authority. 

(2) Upon the publication of a notification under sub-section (1) superseding the Authority,— 

(a) the Chairperson and other Members shall, as from the date of supersession, vacate their offices 

as  such; 

(b)  all  the  powers,  functions  and  duties  which  may,  by  or  under  this  Act,  be  exercised  or 
discharged  by  or  on  behalf  of  the  Authority  shall,  until  the  Authority  is  reconstituted  under  
sub-section (3),  be  exercised  and  discharged  by  such  person  or  persons  as the Central  Government 
may direct; and 

(c)  all properties owned or controlled by the Authority shall, until the Authority  is  reconstituted 

under sub-section (3), vest in the Central Government. 

(3)  On or before the expiration of the period of supersession specified in the notification  issued  under  
sub-section  (1),  the  Central  Government  shall  reconstitute  the  Authority  by  a  fresh  appointment  of  its 
Chairperson and other Members and in such case any person who had vacated his office under clause (a) of 
sub-section (2) shall not be deemed to be disqualified for reappointment. 

(4)  The Central Government shall, as soon as may be, cause a copy of the notification  issued under  

sub-section (1) and a full report to any action taken by it, to be laid before each House of Parliament. 

23. Delegation of powers.—(1) The Authority may, by general or special order in writing, delegate to 
any Member or officer of the Authority subject to such conditions, if any, as may be specified in the order, 
such  of  its  powers  and  functions  under  this  Act  (except  the  powers  under  section  28)  as  it  may  deem 
necessary. 

(2)  The Authority may, by a general or special order in writing, also form committees of the Members 

and delegate to them the powers and functions of the Authority, as may be specified by regulations. 

24.  Members,  officers  and  employees  of  the  Authority  to  be  public  servants.—The  Members, 
officers and employees of the Authority shall be deemed, when acting or purporting to act in pursuance of 

11 

 
 
any  of  the  provisions  of this  Act,  to  be  public  servants  within  the  meaning  of  section  21  of  the  Indian 
Penal Code (45 of 1860). 

25. Protection of action taken in good faith.— No suit, prosecution or other legal proceedings shall 
lie  against  the  Central  Government  or  the  Authority  or  its  Members,  officers  or  other  employees,  for 
anything which is done, or intended to be done, in good faith under this Act. 

26. Exemption from tax.— Nothing contained in any other law or enactment for the time being in 
force, in relation to taxation, including the Income-tax Act,1961 (43 of 1961), shall make the Authority liable 
to pay income-tax or any other tax or duty with respect to its income, services or profits or gains. 

27. Power to make rules.—(1) The Central Government may, by notification, make rules for carrying 

out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide 

for all or any of the following matters, namely:— 

(a) the composition and the manner of constitution of the Selection Committee under sub-section 

(4) of section  5; 

(b)  the  salaries  and  allowances  and  other  terms  and  conditions  of  service  of  Members  under  

sub-section (2) of section  6; 

(c)  other  functions  to  be  performed  by  the  Authority  under  clause  (d)  of  sub-section  (2)  of  

section 12; 

(d)  the  form  in  which  the  accounts  and  other  relevant  records  to  be  maintained  and  annual 

statement of accounts to be furnished under sub-section (1) of section 16; 

(e)  the  form  and  manner  of  furnishing  of  returns  and  statements  and  other  particulars  under  

sub-section (1) of section 19; 

(f)  the  form  of  annual  report  of  activities,  policies  and  programmes  under  sub-section  (2)  of 

section 19; 

(g) any other matter which is to be, or may be, prescribed. 

28.  Power  to  make  regulations.—  (1)  The  Authority  may,  by  notification,  make  regulations 

consistent with this Act and the rules made thereunder for carrying out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the time and place of meetings and the rules of procedure in regard to transaction of business 

at such meetings under sub-section (1) of section 8; 

(b)  the  salaries  and  allowances  and  other  terms  and  conditions  of  service  of  officers  and  other 

employees of Authority under sub-section (2) of section 11; 

(c)  the  manner  in  which  the  Authority  may  perform  its  functions  under  sub-section  (7)  of 

section 13; 

(d) the manner of providing information to the Performance Review Committee under sub-section 

(4) of section  17; 

12 

 
 
(e)  the  maintenance  of  the  website  or  any  other  universally  accessible  repository  of  electronic 

information under sub-section (1) of section 18; 

(f) the foreign currency in which transaction of financial services in International Financial Services 

Centres may be conducted under section 20; 

(g) the powers and functions of the Authority which may be delegated under sub-section (2) of 

section 23; 

(h) any other matter which is required to be or may be, specified by regulations. 

29.  Rules  and  regulations  to  be  laid  before  Parliament.—Every rule and every regulation made 
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in 
session,  for  a  total  period  of  thirty  days  which  may  be  comprised  in  one  session  or  in  two  or  more 
successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the 
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or 
both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule or regulation. 

30.  Overriding  effect.—  The  provisions  of  this  Act  shall  have  effect  notwithstanding  anything 
inconsistent therewith contained in any other law for the time being in force or in any instrument having 
effect by virtue of any law other than this Act. 

31.  Power  to  modify  provisions  of  other  enactments  in  relation  to  International  Financial 
Services Centres.—(1) The Central Government may, by notification, direct that any of the provisions of 
any other Central Act or any rules or regulations made thereunder or any notification or order issued or 
direction  given  thereunder  (other  than  the  provisions  relating  to  making  of  the  rules  or  regulations) 
specified in the notification— 

(a) shall not apply to financial products, financial services or financial institutions, as the case may be, 

in an International Financial Services Centre; or 

(b) shall apply to financial products, financial services or financial institutions, as the case may be, 
in an International Financial Services Centre with such exceptions,  modifications and  adaptations,  as 
may be specified in the notification. 

(2)  A copy  of  every  notification  proposed  to  be  issued  under  sub-section  (1),  shall  be  laid in draft 
before each  House of Parliament,  while it is in  session, for  a total period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if,  before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving 
the  issue  of  the  notification  or  both  Houses  agree in making any  modification in the notification,  the 
notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be 
agreed upon by both the  Houses. 

32. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this 
Act, the Central Government may, by order, published in the Official Gazette, make such provisions not 
inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: 

Provided  that  no  order  shall  be  made  under  this  section  after  the  expiry  of  five  years  from  the 

commencement of this Act. 

13 

 
 
(2) Every order made under this section shall be laid, as soon as may be after it is made,  before  each 

House of Parliament. 

33. Amendment to certain enactments.—The enactments specified in the Second Schedule shall be 

amended in the manner specified therein. 

34.  Savings.—  All rules and regulations made or purporting to have been made or all notifications 
issued or purporting to have been issued under any Central Act relating to the financial products, financial 
services  or  financial  institutions,  as  the  case  may  be,  shall,  in  so  far  as  they relate to matters for which 
provision is made in this Act or the rules or regulations made or notification issued thereunder and are not 
inconsistent  therewith,  be  deemed  to  have  been made or issued under this Act as if this Act had been in 
force on the date on which such rules were made or notifications were issued and shall continue to be in 
force unless and until they are superseded by any rules or regulations made or notifications issued under 
this Act. 

14 

 
 
 
 
 
THE FIRST SCHEDULE 

[See sections 3(1)(a), 13(1), (2) and (4)] 

APPROPRIATE REGULATORS 

Sl.No.        Appropriate Regulator 

Name of Acts 

(1) 

1.  

2.  

3.  

4. 

(2) 

(3) 

The Reserve Bank of India 
constituted under the Reserve 
Bank of India Act, 1934 (2 of 1934). 

The Securities and Exchange 
Board of India established under 
the Securities and Exchange Board 
of India Act, 1992 (15 of 1992) 

The Insurance Regulatory and 
Development Authority of India 
constituted under the Insurance 
Regulatory and Development 
Authority Act, 1999 (41 of 1999). 

The Pension Fund Regulatory and 
Development Authority 
constituted under the Pension Fund 
Regulatory and Development 
Authority Act, 2013 (23 of 2013). 

1. The Reserve Bank of India Act, 1934 (2 of 
1934). 

2. The Banking Regulation Act, 1949 (10 of 
1949); 

3. The Deposit Insurance and Credit Guarantee 
Corporation Act, 1961 (47 of 1961); 
4. The Foreign Exchange Management Act, 1999 
(42 of 1999); 

5. The Credit Information Companies (Regulation) 
Act, 2005 (30 of 2005); 

6. The Government Securities Act, 2006 (38 of 
2006); 

7. The Payment and Settlement Systems Act, 2007 
(51 of 2007). 

1. The Securities Contracts (Regulation) Act, 1956 
(42 of 1956); 

2. The Securities and Exchange Board of India Act, 
1992 (15 of 1992); 
3. The Depositories Act, 1996 (22 of 1996). 

1. The Insurance Act, 1938 (4 of 1938); 

2. The General Insurance Business 
(Nationalisation) Act, 1972 (57 of 1972); 

3. The Insurance Regulatory and Development 
Authority Act, 1999 (41 of 1999). 

The Pension Fund Regulatory and Development 
Authority Act, 2013 (23 of 2013). 

15 

 
 
 
 
THE SECOND SCHEDULE 

[See section 33]  
AMENDMENT TO CERTAIN ENACTMENTS 

PART I 

AMENDMENT TO THE RESERVE BANK OF INDIA ACT, 1934  
(2 OF 1934) 

Insertion of new section after section 57.—After section 57, the following section shall be inserted, 

namely:— 

“57A.  Powers  of  Bank  not  to  apply  to  International  Financial  Services  Centre.—Notwithstanding 
anything contained in any other law for the time being in force, the powers exercisable by the Bank under 
this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART II 

AMENDMENT TO THE INSURANCE ACT, 1938 

(4 OF 1938) 

Insertion of new section after section 118.—After section 118, the following section shall be inserted, 

namely:— 

“118A. Powers of Authority not to apply to International Financial Services Centre.—Notwithstanding 
anything contained in any other law for the time being in force, the powers exercisable by the Authority 
under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART III 

AMENDMENT TO THE BANKING REGULATION ACT, 1949 

(10 OF 1949) 

Insertion of new section after section 51.—After section 51, the following section shall be inserted, 

namely:— 

16 

 
 
“51A.  Powers  of  Reserve  Bank  not  to  apply  to  International  Financial  Services  Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by 
the Reserve Bank under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART IV 

AMENDMENT TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956  

(42 OF 1956) 

Insertion  of  new  section  after  section  29A.—After  section  29A,  the  following  section  shall  be 

inserted, namely:— 

“29B.  Powers  of  the  Securities  and  Exchange  Board  of  India  not  to  apply  to  International 
Financial  Services  Centre.—Notwithstanding anything contained in any other law for the time being in 
force, the powers exercisable by the Securities and Exchange Board of India under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART V 

AMENDMENT TO THE DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION ACT, 1961  

(47 OF 1961) 

Insertion of new section after section 43.—After section 43, the following section shall be inserted, 

namely:— 

“43A.Powers  of  Reserve  Bank  not  to  apply  to  International  Financial  Services  Centre.— 
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by 
the Reserve Bank under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

17 

 
 
 
 
PART VI 

AMENDMENT TO THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972  

(57 OF 1972) 

Insertion of new section after section  38.—After section 38, the following section shall be inserted, 

namely:— 

“38A.  Powers  of  Insurance  Regulatory  and  Development  Authority  of  India  not  to  apply  to 
International Financial Services Centre.—Notwithstanding anything contained in any other law for the 
time being in force, the powers exercisable by the Insurance Regulatory and Development Authority of 
India under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART VII 

AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992  

(15 OF 1992) 

Insertion  of  new  section  after  section  28B.—After  section  28B,  the  following  section  shall  be 

inserted, namely:— 

“28C.  Powers  of  Board  not  to  apply  to  International  Financial  Services  Centre.— 
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by 
the Board under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted 
in the International Financial Services Centres are concerned.”. 

PART VIII 

AMENDMENT TO THE DEPOSITORIES ACT, 1996  

(22 OF 1996) 

Insertion of new section after section 23F.—After section 23F, the following  section shall be inserted, 

namely:— 

“23G.  Powers  of  Board  not  to  apply  to  International  Financial  Services  Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by 
the Board under this Act,— 

18 

 
 
(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART IX 

AMENDMENT TO THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999  

(41 OF 1999) 

Insertion of new section after section  23.—After section 23, the following section shall be inserted, 

namely:— 

“23A.  Powers  of  Authority  not  to  apply  to  International  Financial  Services  Centre.— 
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable 
by the Authority under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART X 

AMENDMENT TO THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999  

(42 OF 1999) 

Insertion of new section after section 44.—After section 44, the following section shall be inserted, 

namely:— 

“44A.  Powers  of  Reserve  Bank  not  to  apply  to  International  Financial  Services  Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by 
the Reserve Bank under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

19 

 
 
 
 
PART XI 

AMENDMENT TO THE CREDIT INFORMATION COMPANIES (REGULATION) ACT, 2005  

(30 OF 2005) 

Insertion of new section after section 33.—After section 33, the following section shall be inserted, 

namely:— 

“33A.  Powers  of  Reserve  Bank  not  to  apply  to  International  Financial  Services  Centre.— 
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by 
the Reserve Bank under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART XII 

AMENDMENT TO THE GOVERNMENT SECURITIES ACT, 2006  

(38 OF 2006) 

Insertion of new section after section 31.—After section 31, the following section shall be inserted, 

namely:— 

“31A. Powers of Bank not to apply to International Financial Services Centre.—Notwithstanding 
anything contained in any other law for the time being in force, the powers exercisable by the Bank under 
this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centre  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART XIII 

AMENDMENT TO THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007  

(51 OF   2007) 

Insertion  of  new  section  after  section  34A.—After  section  34A,  the  following  section  shall  be 

inserted, namely:— 

“34B.  Powers  of  Reserve  Bank  not  to  apply  to  International  Financial  Services  Centre.— 
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by 
the Reserve Bank under this Act,— 

20 

 
 
(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

PART XIV 

AMENDMENT TO THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY ACT, 2013  

(23 OF 2013) 

Insertion of new section after section 50.—After section 50, the following section shall be inserted, 

namely:— 

“50A.  Powers  of  Authority  not  to  apply  to  International  Financial  Services  Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable 
by the Authority under this Act,— 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 

of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established  under  

sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted in 
the International Financial Services Centres are concerned.”. 

21 

 
 
